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NEWS BULLETIN
TANKER SHIPPING
KIRBY COOL ON COVID
Kirby Corp has reported fourth-quarter net earnings of $11.0m, slightly less than half that posted for the same period in 2020, although there was a $5.7m one-off charge related to changes in Louisiana tax law. For the full year, consolidated revenues rose by 20 per cent to $591.3m. “Kirby’s fourth quarter adjusted earnings sequentially increased driven by improved results in the marine transportation businesses,” says David Grzebinski, president/CEO of Kirby. “Our inland business experienced improved market fundamentals due to strong refinery and petrochemical plant utilisation and increased customer volumes. As a result, our barge utilisation steadily increased during the quarter with an average in the mid-to high 80 per cent range. Favourable market dynamics also led to increased sequential and year-onyear spot market pricing, as well as higher rates on term contract renewals for the first time since the start of the pandemic. However, the quarter was not without its challenges as poor weather conditions yielded a 55 per cent sequential increase in delay days. In December, escalating cases of the Covid-19 Omicron variant contributed to crewing challenges.” Grzebinski is optimistic that 2022 will see a continuation of the recovery in economic and industrial activity, with a parallel impact on the inland barging market. He expects an increase in capital spending this year to meet that growing demand. However, growth in the inland marine business in the first quarter is expected to be “modest in the low single digit percentage range due to the impact of winter weather and the Omicron variant, which is resulting in crewing challenges, lost revenue, and incremental costs”. kirbycorp.com AVANCE ENJOYS INEFFICIENCIES
Avance Gas, one of the major VLGC owners, has reported timecharter equivalent earnings of
HCB MONTHLY | MARCH 2022
$143.0m for 2021, down slightly on the $144.1m posted in 2020. Operating profit remained stable but net profit fell by more than half to $32.1m. The VLGC freight market finished the year strongly, Avance reports, though much of this was due to inefficiencies in vessel operations. Congestion in the Panama Canal continues to absorb capacity through increased waiting times and also prompted many operators to shift the ballast leg from Asia to the US Gulf via Suez or around the Cape, which adds at least ten days to the journey. There is also growing congestion at discharge ports in Asia. Looking ahead, Avance says that US LPG production is strong and exports are predicted to grow by some 10 per cent this year, along with additional volumes from the Middle East. Much of this will be taken up by new propane dehydrogenation plants due onstream in China this year. Avance is also continuing with the sale of its 12-year-old VLGCs as it takes delivery of new dual-fuel units, the second of which is due for delivery this month. Sale of the 2008-built Thetis Glory was completed at
the start of March, netting a book profit of some $6m. www.avancegas.com BW SPENDS FOR THE FUTURE
BW LPG has reported 2021 timecharter equivalent income of $465.6m, down 15 per cent compared to 2020. EBITDA was down 25 per cent at $311.7m and after-tax profit fell 24 per cent to $186.4m. Spot voyage income was well down and finished the year in a weakening VLGC market, although some of this decline was compensated for by an increase in timecharter income. The company has also had a number of vessels in drydock over the year for retrofitting with LPG-capable engines and now has 12 dual-fuel ships on the water. Over the year as a whole, BW LPG invested some $92m in fleet upgrades. Looking ahead, BW LPG says geopolitical uncertainty clouds the VLGC market for 2022. Near-term rate volatility could be triggered by factors such as bunker price shocks, changing trading patterns, unexpected LPG inventory management and changes to shipping
